Credit reporting agencies drop medical debt collections; 3 ways to improve score
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YUMA, Ariz. (KYMA, KECY)
Three of the largest credit reporting agencies in the U.S. recently announced they're dropping medical debt collections and with the fed raising interest rates--
Experts say now is the perfect time to work on your credit score to secure lower interest rates when it comes to loans, credit cards and mortgages.
It could rise in a few months-- after credit reporting agencies Equifax, Experian and Transunion announced starting July 1st, they'll remove nearly 70% of medical debt that went to collections from consumer credit reports-- once it's been paid off.
Number one tip -- pay down credit card debt.
It's the second largest section of our credit score.
David Michalek, Chief Brand Officer of Credit Versio says "if you have high credit card balances if you start leveraging credit card debt a little too high. Not at all uncommon to see scores dropped 40 50 80 points or even more."
Number two -- get added as an authorized user on a credit card from a family member or friend.
That way their great credit history will show up on your credit report and potentially raise your number.
And number three -- Put payments on auto-pay!
Create an account for all your bills to pay online and set up for minimum payment so you don't forget.
"You don't want to see that big drop in credit score because you got a 30 day late on a credit card and you forgot because you had to pay it off and there was an annual fee," Michalek said.
And here's a bonus tip -- experts recommend you monitor your credit!
You can go to www.annualcredit report.com.